TerraVia looking to sell?

Algal-based food maker TerraVia may sell all, substantially all, or a portion of the company. Image courtesy of TerraVia

eff Gelski writes in BakingBusiness.com that South San Francisco-based TerraVia is engaged with strategic and financial parties that could result in a sale of all, substantially all or a portion of the company.

TerraVia on May 3 filed a form 8-K with the Securities and Exchange Commission saying the company had entered into a two-month forbearance agreement with more than 65% of its 2019 convertible debt holders, Apurva S. Mody, chief executive officer and director of TerraVia, said in a May 3 earnings call.

“Based on the recommendation of our advisers, we have elected to not make the interest coupon payment prior to the end of the grace period and are targeting to reach an agreement with our debt holders by the end of the month,” he said.

Mr. Mody said he could not provide any assurances on the timing or the scope of any potential transactions. “I do want to be clear that as we pursue this path, our business is operating, and we are very focused on delivering on our commitments to customers and partners,” he said.

“As we work through this process, our focus is on realizing the promise of our groundbreaking technology platform and assuring a path forward for our innovative products, which are demonstrating their potential in the marketplace.”

On May 3 TerraVia reported financial results for the first quarter ended March 31: a net loss of $22,587,000 compared with a net loss of $26,512,000 in the previous year’s first quarter. Total revenues of $4,519,000 were down 8% from $4,888,000 in the previous year’s first quarter.